SBI Cards and Payment Services (SBI Card) reported a 67 percent jump in net profit at Rs 345 crore for the September quarter on the back of good growth in retail and corporate spending.
The pure-play credit card company had registered a net profit of Rs 206 crore in the same period a year ago.
Total income increased by 7 percent to Rs 2,695 crore during the July-September period of FY22, from Rs 2,510 crore in Q2 FY21. The increase is primarily due to higher income from fees and services during the quarter, SBI Card said in a release.
The company's finance cost fell by 4 percent in the reported quarter to Rs 254 crore from Rs 264 crore. However, total operating costs went up by 25 percent to Rs 1,383 crore. The increase in operating cost is due to higher business volumes in Q2 FY22, SBI Card noted.
The credit card company said it has made a total management overlay provision of Rs 231 crore as of September 2021.
Impairment losses and bad debts expenses stood at Rs 594 crore, down from Rs 862 crore in the year-ago period.
New accounts volume at 9,53,000 for Q2 FY22 rose 39 percent as compared to 6,88,000 earlier.
Among other business metrics, the company's card-in-force grew by 14 percent to 1.26 crore by the end of September this year. Retail spending grew by 41 percent to Rs 35,070 crore from Rs 24,863 crore.
Corporate spending jumped 80 percent to Rs 8,491 crore, as against Rs 4,728 crore earlier. The receivables grew by 12 percent to Rs 26,741 crore during the September quarter.
The company reduced its bad assets significantly, as the gross non-performing assets (NPAs) fell to 3.36 percent by end-September, from 7.46 percent. Net NPAs too came down to 0.91 percent from 2.70 percent.
With relation to market share (available till August 2021), SBI Card said the card-in-force share stood at 19.4 percent, while spending was at 19 percent for H1 FY22.
The stock of SBI Card closed at Rs 1,124.55 apiece on BSE, down 1.01 percent from the previous close.